AIIB to provide $304 million for Assam Power Transmission Project

The Finance Ministry has announced that, the Central government has signed a loan agreement with the Asian Infrastructure Investment Bank (AIIB) for the Assam Power Transmission Project.

Key Points

• The loan agreement was signed worth $304 million.
• This loan will be used for strengthening electricity transmission system in the state of Assam.
• The agreement for the AIIB Loan was signed by acting director-general of investment operations at AIIB, Rajat Mishra and the Joint Secretary at the Economic Affairs Department, Baldeo Purushartha.
• Total estimated cost of the Power Transmission project in Assam is $365 million.
• Out of this, $304 million will be provided by AIIB.
• Rest of the amount will be provided by the state government of Assam.
• This loan from AIIB has a maturity period of 24 years and a grace period of 5 years.
• This loan amount from the AIIB will be used to improve the existing power transmission network in Assam.

About Assam Power Transmission Project

• This power transmission project will build new networks in the state that will ensure the affordable and reliable power supply in state.
• The project will also address the substantial energy deficit that the state of Assam face because of congestion in transmission networks and electricity distribution.
• The project comprises of the laying down of a transmission line and construction of 10 transmission substations.
• Further, 15 existing substations will also be upgraded under the project while,
• Some of the existing transmission lines will be converted into the optical power wire.
• This project will help in reducing greenhouse emissions.
• It will also improve the quality of power supply to the consumers.
• The project also seeks to strengthen existing intra-state transmission network in the state by connecting it with new networks which will help in achieving the affordable, reliable, secure and efficient power.

Month: Current Affairs - February, 2021